Asked by Isabella Garcia on May 20, 2024
Verified
Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a
A) debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales
B) debit to Cash and a credit to Sales
C) debit to Cash, credit to Credit Card Expense, and a credit to Sales
D) debit to Sales, debit to Credit Card Expense, and a credit to Cash
Bank Credit Cards
Financial instruments issued by banks allowing cardholders to borrow funds up to a pre-approved limit for purchases or cash advances.
Credit Card Expense
Costs incurred from using a credit card, including interest charges, annual fees, and transaction fees.
Sales
The total amount earned from selling goods or services before any costs or expenses are deducted.
- Identify the distinctions among several forms of sales transactions, such as cash sales, sales on account, and purchases made using bank credit cards.
Verified Answer
KW
Kenyetta WallerMay 23, 2024
Final Answer :
B
Explanation :
Sales to customers using bank credit cards like MasterCard and Visa are typically recorded as a debit to Cash because the merchant receives the cash (less any fees) from the card processing company, and a credit to Sales, reflecting the revenue earned from the sale.
Learning Objectives
- Identify the distinctions among several forms of sales transactions, such as cash sales, sales on account, and purchases made using bank credit cards.
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